Sutter Health Announces Plans for New Destination Medical Center in Santa Clara to Expand Access to Care in Silicon Valley
Investment marks the largest in the organization’s history, encompassing two new campuses totaling 1 million square feet
NORTHERN CALIFORNIA, Nov. 17, 2025 (GLOBE NEWSWIRE) -- As part of its vision to be the most comprehensive, integrated health system in Northern California, Sutter Health today announced plans to build a new medical center on a 13.63-acre site near Levi’s Stadium in Santa Clara. The new flagship facility is part of Sutter’s more than 100-year commitment to expanding access and meeting the evolving needs of patients across the region. As part of a dual-campus investment, Sutter is bringing even more integrated healthcare services directly to one of the fastest-growing communities in the state. It will also build on the significant physician presence in Silicon Valley through the Palo Alto Foundation Medical Group (PAFMG).
“We are honored to work alongside our longtime partners at Palo Alto Foundation Medical Group, whose physicians have delivered exceptional care in the Silicon Valley for decades,” said Warner Thomas, president and CEO of Sutter Health. “This new medical center builds on PAFMG’s distinguished legacy and connects their award-winning care to a full continuum of services within a comprehensive, integrated model of care – ensuring we can meet every patient need. As part of our vision to create a dual-campus medical destination in Santa Clara, this investment expands access, advances clinical excellence and strengthens the coordinated experience for patients and families across the region.”
Expanding Access to Medical Center Services
Sutter will build the planned eight-story medical center at 2831 and 2841 Mission College Blvd., replacing the existing office park.
Once complete, the approximately 850,000-square-foot medical center will feature:
- 272 licensed beds in private patient rooms, with room to add 30 more beds to meet future demand
- Private patient rooms
- A full-service emergency department
- Intensive care units
- Labor and delivery suites and a Level III neonatal intensive care unit
- Advanced operating rooms and surgical services
- Environmentally responsible building design
- A rooftop helipad for emergency transport
- Access for community and community physicians
A Connected, Patient-Centered Care Destination
Sutter Medical Center, Santa Clara is part of the health system’s plan for a broader integrated healthcare ecosystem in Silicon Valley. It will offer a comprehensive location with the latest state-of-the-art technology and innovations that enhance both patient care and patient experience, such as virtual monitoring, personalized patient controls and best practices around use of space to ensure a welcoming environment for patients, visitors and staff.
“By connecting physical infrastructure with digital technologies like AI, telemedicine and remote patient monitoring, we are not only improving access, but we are also redefining how care is delivered,” said Ken McNeely, chair of the Sutter Health board of directors. “This investment in a flagship medical center expands care capacity, drives economic growth, attracts new medical talent and builds the healthcare workforce of the future. All of this reflects our long-term commitment to creating a healthier future in Silicon Valley and beyond.”
Patients will benefit from seamless connections across the full continuum of care — from the dedicated medical center to primary care, urgent care, specialty clinics, mental health services, home care, diagnostic imaging and ambulatory surgery centers. In 2024, Sutter and The Sobrato Organization announced plans in Santa Clara that included four buildings, more than 1 million square feet of ambulatory space adjacent to the medical center and at a second site about one mile away, creating hubs for specialty care in cancer, women’s health, orthopedics and sports medicine, heart and vascular services and more.
The Sutter East Santa Clara Care Center at 2441 Mission College Blvd. opened on Oct. 20, making it the first of the new ambulatory buildings to open. The center offers adult and pediatric urgent care, internal medicine, family medicine, pediatrics, cardiology and cutting-edge lab and imaging services.
The future medical center, combined with the Sutter East and West Santa Clara Care Centers, represents the largest investment in Sutter’s history — totaling $2.8 billion — and will ensure patients across Silicon Valley have access to the right care in the right place and at the right time.
“As Silicon Valley’s population continues to grow and age, the need for timely access to nationally recognized, high-quality, coordinated care has never been greater,” said Dr. Kurt VandeVort, CEO of Palo Alto Foundation Medical Group. “PAFMG has been deeply rooted in this community for nearly a century, proudly serving generations of patients with compassion and excellence. Our integrated network of exceptional physicians and advanced practice clinicians is enhanced by digital tools designed to meet this growing need. We are building a healthcare destination that streamlines the patient journey, reinforces continuity of care and delivers a personalized experience grounded in clinical excellence.”
Meeting a Critical Community Need
Sutter is building the new medical center in an area that is underserved by health systems. Currently, area residents must travel 20 minutes or more to reach the nearest hospital. As the local population continues to grow and age, the demand for hospital and outpatient services will increase.
Sutter’s investment in a new medical center in Santa Clara will bridge this gap in care, bringing vital lifesaving services closer to where people in Silicon Valley live and work. The project will also create new jobs and boost the local economy, delivering both health and opportunity to the community.
“Santa Clara is growing, and with that growth comes a greater need for comprehensive healthcare services,” said Santa Clara Mayor Lisa Gillmor. “This new medical center reflects our shared commitment to expanding access and meeting the needs of our community.”
Sutter projects the medical center will open in late 2031.
Future Workforce, Partnerships and Graduate Medical Education Programs
Sutter’s new care facilities in the Greater Silicon Valley region are projected to support more than 5,000 jobs once fully open by 2031, including more than 3,000 direct Sutter employee and clinician positions, according to an independent economic impact analysis completed by EY, the global professional services organization. Sutter expects these roles to offer compensation higher than the regional average, delivering high-quality employment opportunities to the community. Additionally, during the development phase the project is expected to support more than 2,500 jobs across construction, supplier industries and the broader economy. The anticipated total economic impact of the project during the development phase is $3.3 billion.
The organization is deeply committed to hiring and building the future healthcare workforce. Through the expansion of its Graduate Medical Education (GME) programs, the organization plans to train more than 1,000 residents and fellows each year by 2030, positioning Sutter as the largest community-based healthcare training institution in Northern California. Beginning in 2027, Sutter plans to create residency and fellowship programs in internal medicine, OB/GYN, general surgery and radiology in Santa Clara.
In partnership with PAFMG, Sutter is also recruiting and welcoming hundreds of new physicians and advanced practice clinicians to serve the growing patient population in the region. Since 2022, PAFMG has hired 750 physicians and clinicians, including nearly 200 so far this year, demonstrating steady momentum toward the medical group’s goal of adding 400 physicians in Silicon Valley by 2030. This is in addition to the hundreds of community physicians Sutter partners with to fuel care delivery in the area. These collective efforts aim to ensure that patients today — and future generations — have timely access to high-quality care that well-trained clinicians provide.
Sutter also leads workforce development programs that build clear paths for growth in healthcare career pathways beyond physicians and advanced practice clinicians. In Santa Clara, Sutter is collaborating with West Valley-Mission Community College District on programs that include nursing pathways and a new bachelor’s degree in emergency services administration.
“Sutter Health’s new medical center in Santa Clara represents a major investment in the future of healthcare for Silicon Valley,” said Assemblymember Patrick Ahrens. “As our region grows and innovates, so must our commitment to the health and well-being of the people who drive that progress. This facility is more than just a building; it’s a promise to deliver accessible, high-caliber care to diverse communities, support the health care workforce and strengthen the infrastructure that sustains a thriving Silicon Valley.”
Community Commitment
Beyond the walls of its clinics and hospitals, Sutter invests in programs and partnerships that directly improve the health of communities. The organization provides funding and support to federally qualified health centers, such as Bay Area Community Health in San Jose and Second Harvest Food Bank of Silicon Valley, so they can expand services for working families and underserved populations. Sutter is also partnering with local schools and colleges to grow healthcare career pathways and improve long-term access to care.
In addition, through initiatives like sponsorship of Bay FC, Northern California’s first National Women’s Soccer League team, Sutter is advancing inclusion and wellness by encouraging active lifestyles and promoting community belonging. These efforts reflect the organization’s belief that improving health outcomes requires addressing both clinical care and the broader social and community factors that influence well-being.
About Sutter Health
Sutter Health is a not-for-profit healthcare system dedicated to providing comprehensive care throughout California. Committed to advancing innovative patient care, healthy outcomes and community partnerships, Sutter Health is pursuing a bold new plan to reach more people and make excellent healthcare more connected and accessible. Currently serving more than 3.5 million patients, thanks to our dedicated team of more than 60,000 employees and clinicians, and 14,000+ affiliated physicians, with a unified focus on expanding care to serve more patients.
Sutter delivers exceptional and affordable care through its hospitals, medical groups, ambulatory surgery centers, urgent care clinics, telehealth, home health, and hospice services. Dedicated to transforming healthcare, at Sutter Health, getting better never stops.
Learn more about how Sutter Health is transforming healthcare at sutterhealth.org and vitals.sutterhealth.org.
About Palo Alto Foundation Medical Group
Palo Alto Foundation Medical Group (PAFMG) is one of the largest multi-specialty medical groups in the country. Originally founded in 1930 as the Palo Alto Medical Clinic, PAFMG has grown over nearly a century to more than 2,150 physicians and advanced practice clinicians representing over 40 specialties. PAFMG has received multiple awards for quality of care, innovation and leadership. Most notably, PAFMG received the distinguished 2025-2026 American Medical Association’s Joy in Medicine Gold recognition. This honor places PAFMG among just four healthcare organizations on the West Coast to earn the award, which highlights health systems that use data-based strategies to reduce physician burnout and support professional well-being.
PAFMG is aligned with Palo Alto Medical Foundation (PAMF)/Sutter Health, a not-for-profit healthcare system. PAFMG partners with PAMF/Sutter Health on operational and administrative support, and this collaboration leverages the latest technology, allowing clinicians to focus on delivering exceptional patient care to over one million individuals. PAFMG serves communities in Alameda, San Mateo, Santa Clara and Santa Cruz counties.
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Angie Sheets Sutter Health 916-494-9547 angeline.sheets@sutterhealth.org
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